|    FM Home   |    FM News   |    FM Forum   |    FM Blog   |   
Wednesday 08th of October 2008
July 23, 2008

Sub-prime lender offers cash-back on mortgage redemptions


by Gill Montia
Sub-prime lender offers cash-back on mortgage redemptions

One time subprime mortgage specialist, Edeus, has taken the unusual step of offering cash-back to selected customers who redeem their mortgages.

The lender closed its doors to new business last year and has been struggling to sell its loans to investors in mortgage-backed securities.

Much of the debt is in the sub-prime sector and the market for this is virtually dead.

The firm is therefore offering an 8% discount to certain customers who can pay off their loans in full.

Around 400 borrowers could initially benefit from the offer, which includes a waiver of the firm’s normal exit and early redemption charges.

According to Edeus’s managing director, Alan Cleary, a loss will be made on each mortgage but this represents the lesser of two evils because in recent months, the firm has only been able to raise fresh loans by offering steep discounts to multi-national banks.

The scheme may be extend if it proves to be popular and Edeus says it hopes to return to the home loan market at some point in the future but in the meantime is continuing with its mortgage advisory service.

Discuss this in the Finance Markets forums

Story link: Sub-prime lender offers cash-back on mortgage redemptions


Add to Bookmarks:

ADD TO DEL.ICIO.US     ADD TO DIGG     ADD TO FURL

ADD TO STUMBLEUPON     ADD TO YAHOO MYWEB     ADD TO GOOGLE     ADD TO SPURL

 

 

Previous: « Mortgage fees rise 20% in a year
Next: June house sales slump by 45% »

Visited 621 times, 1 so far today